[inaudible conversations] ..

discusses information sharing and the intelligence community. he spoke of the center for strategic and international studies for about 50 minutes. >> okay folks. great. thank you all for coming. i'm delighted you are here. my name is john, president of csis. i have no role other than the ornamental one but to say welcome to all of you i'm delighted that you're here. i warned general clapper this is probably the most dangerous of the insider ever seen because they look like they know something. think tanks always have people that come with an audience that knows something this is quite an act knowledgeable group that's here delighted you're here, thank you very much. this is going to be very interesting session. i'm going to turn to dan to formally introduce things.

a lot to say a word of thanks to my friend general clapper i have nothing to do it inviting him, so then i feel completely liberated to say what everything about him which is he is one of my heroes this is a man who's dedicated his life to something much bigger than himself and that's serving this country. he's done a spectacular job than virtually any position that the government has in the area of intelligence and the only thing that he failed honestly was trying to be a civilian for a brief period of time. he never liked that very much. and when called to come back into service after a very distinguished -- called to come back into service and went to the nga transformed it and give it the most complicated name in

history or an agency, but then of course that led to him being pulled into the defense department is the under secretary for intelligence as the current director of national intelligence a spectacular job at a tough time. we have had ever since the vni was established it has been an era of additional resources and now we have this pivotal point. that's become a new favorite washington word, tikrit went to an area there is going to be austerity, and fortunately general clapper has such a broad base and depth of skill and understanding this community that he knows how to guide through this time, and i think that he is doing a terrific job. now this is a very awkward time for general clapper because the budget isn't formally released.

so i'm just going to give him permission to answer some of your questions if he decides to. as has always been the case he is willing to put at risk his own career but i'm not willing to do it for him and so i will give him permission to say i can't answer that because the president's budget is not out. it will be of to him to decide what he wants to do. but i -- a very famous american once said he wanted to judge people by the content of their character not the color of their skin. i know the content of this man's character. we are lucky to have him in service. i want to thank our friends at ibm that targeting is the possibility to bring this public forum to this audience today and we are glad you all here. why don't i turn to you. >> thank you, dr. and stevan. i'm the vice president and practice for public sector strategy and innovation consulting ibm. we are pleased to be the

industry partner for this important conference in the series which has gone on for longer than the year and on information sharing. today's conference, again is an important step to continuing the dialogue for the information sharing adapting and improving and expanding information sharing environment. in the years since the information sharing and fire that was established by the intelligence reform and terrorism prevention act of 2004 we have come a long way in terms of predicting and preventing incidents not to simply respond after the fact and we've done that by better sharing information, analyzing it and participating and presenting the incidents in no time. today's program aligned with ibm's longstanding commitment to support the nation's efforts to strengthen information sharing and improve global security. many members of the ibm team are going to be participating throughout the course of the day and we appreciate the opportunity to engage in these discussions. now it's my honor to tell you a little more than what dr. henry did about our keynote speaker

today. director of national intelligence james clapper. he was sworn in as a fourth dni in august 2010. he leaves the united states intelligence community and serves as the principal intelligence adviser for the president. he has a long and distinguished career in the u.s. armed forces beginning as a rifleman in the u.s. army reserve culminating as the lieutenant general in the u.s. air force and the director of the defense intelligence agency. over 42 years in uniform service see also helped position the chief of staff for intelligence coming u.s. air force headquarters during operation desert shield and desert storm and as the director of intelligence for the war fighting command in korea specific command and strategic air command. he also served to combat tours strings of east asia conflict in the 73 missions in cambodia. he first retired in 1995 and worked in industry for six years as an executive on the 36 as companies with business focus on

the intelligence community. he served as a concerted and adviser to congress, the department of defense and energy and was a member of a wide variety of government panels for the commissions and advisory groups. he was a member of the downing assessment task force that investigated the bombings in 1996 and was the vice chairman by former governor gillmor of virginia on the subject homeland security. he returned to the government in 2001 as the first civilian director of the national imagery mapping agency served as director for five years transforming that organization. the under secretary of defense for intelligence where he served as the principal stuff assistant and advisor to the secretary and deputy secretary for defense and intelligence, counterintelligence and security matters for the department. he was also headed as the director of until lunch debate to intelligence for the dni. here his bachelor's degree in politics and university of maryland and massachusetts degree in political science from

st. mary's university in texas and a moderate doctorate and strategic intelligence from the then joint military intelligence college. he's won numerous awards, national intelligence distinguished servos metals, the air force distinguished service medal, the coast guard distinguished public service award, department of defense service award and a host of other awards and decorations. he was named as one of the top 100 ip executives by the federal computer week in 2001 and has been a single by the naacp in the form of its national distinguished service award and has been awarded the presidential the comfort national security medal. i had the honor when we served on the council on foreign relations task force on the civil liberties and national security and i had the honor of working with the intelligence and national security supporting director clipper's thinking around the civil liberties and keeping the country safe. in both of those experiences with general clapper and his

commitment to keep the country's even by his commitment to the information sharing and his commitment to the civil liberties. with the bible like to introduce to director clabber and we look forward to a good day. [applause] estimate would be nice guy quit while i was ahead. i appreciate the very generous and very kind introduction. certainly appreciate csis for this opportunity to kick off a very important dialogue. obviously i don't need to tell this grout information sharing with a huge mandate for us all since 9/11. the notion of sharing how is an interesting, concept it can be nominal and dangerous and it depends on what is shared and who is shared.

there is the saying that thousands can be lit from a single candle and the life of the campbell will not be shortened. happiness never decreases by being shared. that is a little too warm and fuzzy for you and also found some more is written by a noted harvard professor. collecting data is only a first step towards wisdom comes to indeed is a first step towards community and that applies in spades within the intelligence community. at the same time of course we as you know have the dilemma of protecting information so there is this i love that we all wrestle with particularly those in this group and how we balance the to. we are here today of course talk about the information and we

might define that as a national response will be to ensure any person with the appropriate mission need can discover and access actionable information at the right time. to successfully prevent harm to the american people and at the same time protect our national security we believe that sharing must be done responsibly, seamlessly and secure. with regards to the safeguards in place to protect the privacy and civil rights and civil liberties and american people as well as a novelist disclosure. in short, the right data anytime, anyplace, usable by any authorized recipient, preventable only by law or policy, not technology, and protected by the comprehensive version of accountability. that is our vision.

or in a mashaal sharing and safeguarding all the information x. quizzically and perfectly. that is of course the nirvana of information sharing. as we all know in the last ten years it isn't an easy task. information sharing goes far beyond the intelligence community. where i work, and it can get a little bit confusing, so i wanted by way of explaining some of the other speakers to kind of explain these relationships at least as i see them. this morning you will be hearing from six of the people from my office, the office of the director of national intelligence, so the panel on our first panel will be what's

called a program manager for the information sharing environment and also is tethered to the dni, he really is the national league for all u.s. government information sharing. and in that context reports treacly to the white house. so he cuts across the entire fabric of the u.s. government struggling in other domains besides intelligence, which means law enforcement, public safety, homeland security, defense and foreign affairs. so he has a mission in puddings energizing and aligning these fields with of the white house. so, intel sort of my domain is just one area that he touches and influences. i would also like to recognize david and now deputy director of the defense agency on the first

panel. david is an zero dni plan colcord reva he was there the beginning in 2005. on the second panel, which deals with a culture of information sharing as stone, she is the lead on my staff information position i established when i came on minister of. it so devoted to this topic that she came off of maternity leave just to be here. so this is her idea of fun to get a babysitter and come to a conference sponsored by csis triet she will be talking about how to change a culture to increase information sharing which is of course one of the challenges we have in the intelligence community. and the way we are doing this sum would accelerate as opposed

by wikileaks is by increasing the confidence that the information is secure. oftentimes although it is probably the characterization there is a zero sum relationship between the need to share and the need to protect. maybe it is better or more accurate to coordinate how we increase both. so cornyn makes sure we of the policy to proceed the technology on place to sharon formation, protect the information and safeguard the civil liberties and privacy and it's those three pillars of those three factors that we have to reconcile and synchronize. the third panel today is on efficiency kosko and privacy. mike cow who is the deputy and willson from the national

counterterrorism center or the in ctc, another new feature of the intelligence landscape that was part of the intelligence reform and terrorism prevention act. in ctc also housed in the o.d. and i would again a special relationship with the president. the fourth and last panel has my civil liberties and privacy officer alex and i think that there is a message just in the fact that again by law on the o.d. and my staff as a full-time civil liberties and privacy officer who i think is a national asset and a very trusted adviser on many of our most sensitive and important issues. he will be with others to focus on how the advance policy and the operational framework. so, just all to say how we were

presented and committed to this conference because the importance of the subjects. let me just touch on a few points and then take questions. one of the things that is new for me in this job is of course engaging in the domestic arena particularly with the law enforcement community have had the occasion to engage quite a bit as a matter of fact through the offices of the international association chief of police and many of their sort of support in that task forces and organizations. as was alluded to the retired military but i've come to have great respect for what law enforcement does to protect our security in this country as well. and found them to be able - of

wisdom and insight when it comes to glycol street intelligence. like the military and the intelligence community overseas, the too put their lives on the line at here at home. many years ago, i remember i was president of the community association i lived in, something i will never do again. [laughter] , and had helped set up one of the first neighborhood watch programs. this is we did in the 70's, and in accordance in the practice of doing that had the opportunity to do some light belongs with the county police and later on the virginia state police and it's quite an education to sit inside a police cruiser looking out and see the police and law enforcement do day in and day out. cupels somebody over and have no idea what you're getting into and the scariest call that a law

enforcement officials don't like to get the always do in paris is a domestic disturbance. anyway, there was a great appreciation from a great sensitivity training if you will for me on having that experience and knowing what the law enforcement people do day in and day out. i think the commander will bring information sharing initiatives that he's working with law enforcement, so let me just briefly address the key points about the sharing of intelligence. in the first of course is integration which you may have heard this kind of my emphasis, my mantra in this job focusing on tell intelligence integration absolutely mission critical for the intelligence community. our goal if you will is simply

an asian made more secure because of a fully integrated intelligence committee. for all the u.s. government threats require us to exarate responsible information sharing. secondly, doing this requires some standardization and we are pursuing some efficiencies as all of us are in our business. we met yesterday with our colleagues, and one of them offered up the term that has become popular in his country in australia called the efficiency dividend, which is as he said and are willing and euphemism for cuts anyway, we are doing that as well and one of the things and the big idea department somewhat influenced

by budget pressure cuts is for the first time ever and integrated i.t. enterprise across the major intelligence agencies in the community. this is something we talked about for years just were never told to do it and now we are in the line of the physicist and 1927 dealing with a new zealand budget crisis as a paraphrase we are running out of money so we must begin to think. so we are kind of in that mode now. many become one of those is clout computing which is i think as a huge potential for achieving savings and promoting integration. and of course it tended to that will be the requisite for security as well. but, like the i.t. is an enabler, not a panacea. the third key point is in the

protecting privacy civil rights and civil liberties is paramount. again, in this job i have become particularly sensitive to this issue, and this is a big deal in this country as it must be. i think there is a maturity and specification in today's intelligence committee about this that the public doesn't appreciate or see. but protecting the rights of americans is core to our information sharing efforts and this of course requires the enterprise approach. fourth, sharing and safeguarding information must be done in tandem. i guess this would be the opportunity to bring up wikileaks which has been a

terrible event force and that has caused us to make some changes in our community in terms of auditing and monitoring and controlling the media coming and we have to do more to tag the data and ensure that we can properly identify people so we are sharing information. we are assured that we have a bunch of vv and they are actually authorized to receiving information. it is sort of counter intuitive, but by having greater identity management and greater improved labeling data that ensures security and also enhances sharing. if you can be sure that the information that you are sharing is actually going to allow rice

recipient, that actually is an inducement to do more sharing. now, we will of course as we always do and still distrusts to prevent the recurrence but our system is based on personal trust. we had an egregious violation of personal trust in this case. we've had them before and we will probably have them again. the president signed an executive order in october the executive order 13587 which is designed as a result to improve the security of the classified networks and to promote responsible sharing and safeguard classified information and set up some bodies, organizational bodies to make sure that happens so we bring together both sharing and

security. so as a part of this, we need to build a more pervasive auditing and monitoring capabilities and we have varying degrees of capability right now in the intelligence community so we are going to do some investing and bring that into balance. we need to develop a national inside threat policy. and as i said established with the shivers. the goal of course as i said is to find that sweet spot between the need to protect. the fifth point is, and this is something the pmi is working hard at is embracing the common operating models and services. so with that in place for me is

greater integration horizontally across the so-called stovepipes in the intelligence community as low as vertically with some federal and state, local, tribal and private sector. and our allies as well. the program manager for information sharing environment is open to transform justice of public safety and information getting them into the information sharing business model. working to promote common operating models and share services. the sixth and final point is of course that in all of this the challenges are not technical as much as they are just ensuring the right policies and government. we in the intelligence committee has developed strategic and intense plans for managing the nine do the conversion activities, and pmi s. c. working together is also

established the u.s. government mechanism for managing and overseeing the compliance standards and safeguarding standards among the partners. so with that, i think i will stop and we will be happy to take some questions. >> thank you very much for that. we appreciate the remarks that you've taken time out of your extraordinarily busy schedule to address this. my name is rick nelson, director of the homeland security and counterterrorism program here at csis. i want to clarify one thing john gave me to cover which i'm glad he did it to moderate the question and answer session. those of you that know me i run a tight ship and i want to clarify this is the information sharing conference. this is in the but iran conference were the rescue conference. this is in the president's

budget conference this is the information sharing conference, so i would ask you not to put me on the spot and make a tight ship about what we are going to focus on information sharing. i also want to use my prerogative as a moderator to ask the first question and tap into some of the director clapper's extraordinary experience in this field. on the issue of information sharing and particularly the culture, how have you seen the community and not just the intelligence community the fed increase information sharing over the last ten years. some of it has to have been forced on them by legislation and would perhaps do you think was the biggest factor that caused the increase of information sharing and do you think it's got an attraction now where it is self sustained? >> well, i just want to answer, that's all. the biggest event which, you know, was an epiphany for all the fuss was 9/11.

having been around the intelligence community for a long time, i think that offense and what in sued after it was a signal thing for us certainly in the intelligence community and i think the larger government. you know, classically used or clean it was a firewall having grown up in the intelligence business between foreign and domestic i was a young pup in the nsa and watched the church procuring this which were addressing a lot of the abuses. frankly they went on under the mantra of foreign intelligence, but it was done illegally in the united states may be well intended, but bad for the country. that led to the first version of

the executive order which laid out very specifically and kind of reaffirmed that firewall between the foreign and domestic. all of that came of course to a halt dramatic with 9/11 so that is what has caused us. that is what gave rise to the intelligence reform terrorist prevention act the mandated and set up the dni and some other things and the need of information sharing. so now that firewall is gone. it's not to say that it's completely eradicated comfortably i will say, but i think that we have made a lot of strides and i think that there are more and more as a recognition of the need to share responsibly and securely but protect civil liberties and in

answer to your question what stick, is there enough momentum and enough attraction from absolutely. i don't think there is any question about that. that said, because of the history where we've been doing the foreign intelligence a lot longer than our engagement in the domestic arena which is not as mature which i think occur largely through history, and from what i have seen in several capacities in the three jobs i've had in the last ten years - we have made great strides and that's not to say there isn't more to do. >> thank you for that. we do have questions. we have microphones going around. please come state your name and your affiliation if you have

one, please. we will start in the front right here. >> dave with aviation week. what is your best assessment of unintended information sharing, the effect on military programs in particular the effort 35 program which was successfully act, and is it your belief that breach of information result had been the new cost and program stretchouts to compensate for those breaches? >> i would just say that in general this is the internet age and all that that has given us it has also led to the egregious intellectual capital, intellectual property. and, you know, the half 35 was clearly a target's, but i really

can't draw any empirical conclusions because i simply don't know what that impact may have had in terms of program stretchout or program management challenges. i just don't know. but clearly the attacks on the intellectual property across-the-board from the individuals or nations states is a serious challenge in the country, and we need to do something about it. >> next we will go ahead over here in the front. specs before. with the associated press. you mentioned that you are working hard to do things like tag the information and also put in a system where you are monitoring your own people. how far along are you on that? >> i would get you some specific

it is a work in progress. and this would be part of our -- as we go to this new architecture if you will just speaking within the intelligence community part and parcel of this, which will certainly promotes this i'm pushing which is integration, not to mention the efficiency will be the ability to share more broadly within the intelligence committee data which is still a challenge for us and in doing so when we can tag the data so that we can account for it and catalog and then when it comes time to establish a community of interest you know what data is in question and if you have those who need to have access to you can do it much more quickly and efficiently than we are able to do it now.

so that is what i hope that we will ensue as a transformation of the enterprise just within the intelligence community. so that then it serves as the point i try to make in my remarks it actually serves to both enhanced security and promote sharing. if you know what the data is in question, you know where it is and with whom it can be shared and then you can account for it when it is, you are in a much better posture both from a security as well as a sharing standpoint. >> well, our plan is over the next say five years i think we will make some serious and noticeable changes. >> great. we will go to the gentleman in the blue shirt.

>> there's been a lot of discussion about the continuing signs of the commercial imagery by the intelligence committee, the white house has a study group. the study could roll going to change substantially? >> well, going back to before anybody heard of it and when i first took over in 2001, we were -- i became in a big believer in the commercial in a tree. it has the benefit of course of being unclassified, so that is great for sharing both with collision overseas and certainly domestically. so i think there is always going to be the need, substantial need for commercial imagery within

the intelligence community and for many other purposes. to know exactly where we are on the study and should be the next couple months i would guess i would have that done and now of course it is just a real look at the utility and applicability of the commercial and injury. but that's not to say that in this era of budget cutting that the commercial and measuring is to be considered in that situation as well. >> great, thanks. >> at faizal formerly of the cia and then the chief. despite their reputation of my former organization of information sharing, i'm not i don't think most knowledgeable people are.

you don't spend hours in a safe house and that of course wanting to keep all to yourself. i think you've got a right that responsibility to share and the need to protect. line still not clear about and a lot of people are concerned when you get into the terms that you need with the recipient information and authorities i think there is a confusion of what does that mean as a distinct contest of the need to know which became for a while a bad term. we've come back to the essence of the need to know in everything that we do. can you help us understand the difference between the notion of the need to know which is a strict construction and the authorities of to to information sharing. >> you mean in the context of the intelligence community there is of course as john those the need to protect particular sources and methods, and at the same time there is the intel is

cool and we have this kind of dilemma between protecting the source adds, methods and information that is then cleaned on how that information is used. what i was trying to get out is if you are able to tag and label data so that you can read those segments if you will, the sources and methods as opposed to the substance of the information which is really what you need, and then you also can determine routinely and systematically so it's not a big, huge deal, and do it with all but a city that you can establish quickly communities of interest, this sort of thing based on a given need if you have the data labeled and know the people who need to have

access to the data we can do that and do it on an automated basis which we can't do now very well i think you promote the interest of both sharing and security. >> next in the blue shirt in the middle. the microphone is coming. >> john of the information security oversight office. the current classification system aid or hinder information sharing? if not what recommendations what we have to help enhance the information system in the digital age? >> there's nothing wrong with the system. it's how it is used in making the classification determination. so i guess one way you could remove the hindrance is to not classify anything. you know, it would be information sharing. cartooning would be to take it too extreme and of course this

gets to the issue of the over classifying which is an allegation that is often made in the substance to those accusations. the intelligence community has a lot of what drives or motivates classification decisions in the record of label data that we deal with by the contemporaneously circumstances. so, something that we classified today and we might be different determination if you look at a year from now or five years from now. i do think we are very conservative. frankly as a personal opinion or declassifying material. but -- and again, this is another one of these nirvanas

and the holy grail we are all looking for. what is the idea sweet spot for classifying. we shouldn't over costly or underclass high, to be in the middle somewhere and that is just a difficult thing to do perfectly day in and day out. specs before so much. the gentleman in the red tie over here. sorry i can't see some of you. >> david. sir, to your mind which agency has the lead responsibility for sharing information about the suspicious activity that indicates an imminent attack making sure that the regional stakeholders are aware of that. is this a structured data problem or is this an operational problem and then who is making sure that there is no problematic scene between the two perspectives?

>> i'm sorry. your question applies as one agency? >> the legal responsibility for making sure that the procedures and protocols are in place if we see a terrorist and netting smoke from his back that we won't have to wait the hours to the database to analyze some where centrally that actually get acted on at the regional level. >> will let hard to say that there is one single agency that has a legal obligation to do that is a collective responsibility that we all have. under the scenario that you cite, it is state and local officials. starting with the citizenry for that matter, someone that witnesses and the event like that and gets it to the appropriate authorities. i think that the commander can

probably speak more to this suspicious activity reporting process and the training modules that have been set up for doing that. but on a really can't -- i think it would be -- well it's not, it's just not set up that way that one element is responsible for being accountable for ensuring that the warnings are passed quickly. it's the collective responsibility, it's mauney responsibility particularly to ensure and that is what i've been placing so much emphasis on integration. as i said before, both horizontal the within the intelligence community and vertically the federal, state, local and sector by the way is not intended to imply one way hierarchy. it goes to waste. the nexus of the state level of course are the 72 or so fusion

centers which is another 72 of them, not just one that i look upon as the organizational nexus for either bringing information up from the local level or bringing it down from the federal level. >> we will go over here. >> from bloomberg news you talked about the inside threat policy. can you talk more about what that involves a and where that is in the process and has been about a year and a half since wikileaks, so where is that and what is taking so long? can you talk also about the insider threat? >> i'm sorry i didn't hear the first --

>> the insider threat policy that you mentioned. he said that you need to develop an inside threat policy. so what does that involve and where is that in the process? >> i don't know where the written document is if that is when you referred to, quote but i think frankly inherently we've always had the responsibility for detecting the insider threat. i just think that what wikileaks has done is heighten our sensitivity about that and of course in the i.t. context and insider threat is quite profound and that's why i think a devotees more sensitized about being alert to detect insider threats and there isn't a silver bullet. you have to have that and we've

done what over the last three or four years to enhance and improve and streamline the process which is another dimension which sort of gets at the issue of personal trust >> what's go ahead and last question if >> peter bishop what wm software. .6 i wonder if you can expand a little on that where you say you're not looking primarily for the new technology, but doing more in the way of the right policy. presumably this means you are not waiting for the new technology but on the other hand you are still open if new technology is developed that can help with a more perfect and exquisite sharing of information you are still open to it. can you expand on that?

>> if you answered your own question. that is exactly right. i mean, this has always been about governance and oversight leadership if he will. but as we are able to acquire the technology and substantiate it pervasively, where there's a confidence and assurance about the data on its content and with whom it is going to be shared, that actually serves as i said earlier to enhance sharing. so to the extent that we would bring to bear technology would help facilitate that even the big idea aside, absolutely. >> what a brilliant last question to read the question answers itself. first we have in a new agenda today so i would ask you to stay behind the rest of the agenda. i want to thank our sponsor ibm

and the most importantly thank director clapper for taking time out his busy schedule to share some thoughts on this important topic. thank you. [applause]

here's more about the presidential primary coverage. >> by the end of my second term -- [laughter] [applause] [cheering] we will have the first permanent base on the moon and will be america. by the end of 2020, we will have the first continuous propulsion system in space capable of getting to mars in a remarkably short time because i'm sick of being told we have to be timid and i'm sick of being told we have to be limited to technologies that are 50-years-old. >> when the founders said that the creature had and tell us

with certain inalienable rights among them life and liberty and the pursuit of happiness, they laid out a path for america that wasn't temporary but was in during a half that says america we cannot pursue happiness as we choose we do not need a government to tell us what kind of car to get on the government to tell us what kind of laughable we can have portales with kind of health care we are going to have a curious mix to the candidates are posting on the social media along with political reporters and viewers like you at c-span.org/campaign2012. >> britain pay minister david cameron was critical earlier about planned financial transaction tax bite of eurozone. he spoke about the health of the global economy and the need for more trade agreements. professor kim and is attending the world economic forum in davos, switzerland, which is an annual event held for world leaders, philanthropists and

economists. >> good morning, ladies and gentlemen. it gives me great pleasure to introduce to the prime ministers of the united kingdom. i think we are very privileged after having listened yesterday to chancellor merkel, to hear now the prime minister talking about his vision for the future of the world and for the future of your world. the prime minister of the united kingdom, please, welcome. [applause] >> thank you. >> thank you for the interaction. it's great to be back at the

world economic forum in davos. but we meet today at a perilous moment for the economy is right across europe. growth has stalled, unemployment is rising, the prospect of your up getting left behind is also apparent. while china grows up 8% in the yet 7% in the effort at 5.5%, the european commission forecast that the e.u. will grow by just 4.6% in the whole of 2012. and even if that is as human as the problems in the eurozone get better, not worse. yesterday in britain we have the official figures for the final quarter of the last calendar year. and they were negative. of the others are forecast to have a similar outcome or worse. in just four years, government debt per citizen has risen by

4,500 bureaus. foreign direct investment has fallen by a around two-thirds. and in more than a powerful member state, a fifth of all young people are now out of work. so this is not a moment to try to pretend there is not a problem nor is it a moment to allow the fear of failure to hold us back. this is a time to show the leadership that our people are quite rightly demanding. tinkering here and there and hoping that we will draft a solution simply isn't going to cut it anymore. this is a time for bold, not for caution. boldness for what we do nationally but also what we do together as a constant. in britain we have had to be bold. we were faced as we came into government with the biggest budget differs in our peacetime history. more than 10% of our gdp. we had the most leveraged banks, the most indebted households and the biggest housing boom.

to be cautious would have been catastrophic. instead, we were bold and decisive. we formed the first coalition government for 70 years. we legislated for a fixed term five-year parliament which helped give people the confidence of stability and credibility. we put forward an aggressive set to get our economy back on an even keel. 5.5 billion pounds saved is not the first financial year but one that was already under way. welfare bills, the cost of government, cut. public-sector pay, frozen. the state pension age increased. let me give you one example. the reform of public sector pensions this is a difficult issue for any government. we want public servants to have good pensions. we have ensured that that is the case. but at the same time, we've actually cut the long-term costs in half by taking bold decisions

to get to grips. britain has shown that it is possible to earn credibility and get ahead of the market's. borrowing costs have fallen to the lowest of a generation. and we will be equally involved in meeting our key envisions which is to support enterprise and make britain the best place in the world in which to start or to grow the business. so we are pursuing a pro-business agenda strapping tape, simplifying income reviewing all regulation, creating the most competitive business tax regime in the developed world with corporation tax coming down to 23%. we are making bold investments in the new infrastructure including high-speed rail. and while we may be fiscally conservative, we are monitoring the radicals. we are injecting cash into the banking system and introducing the credit easing measures to make it easier for the small business to access finance. so my message to you in this

special olympic year for britain is that we are a country that is absolutely committed to enterprise and to open nest. come to britain, invest in britain, the part of the special year in a truly great country. so in britain we are taking bold steps necessary to get our economy back on track. but my argument today is that the need for bold action at the european level was equally great. you're's lack of competitiveness is that the achilles' heel. for all the talk the lisbon strategy has failed to deliver a structural reform that we need. but statistics are staggering. as measured by the world's economic forum more than a half of the member states are now less competitive than they were this time last year. while five of the states are now less competitive, then a country that is iran.

for every euro in been tested in the capitol in the e.u., five times as much as being invested in the u.s.. our single market, one of our greatest strengths remains incomplete. and now still a colossal 4,700 professions across the european union to which access is regulated by the government and that is in all. in spite of the economic challenge, in spite of the unemployment challenge, we are still doing things to make things life even harder to read in the name of social protection, the e.u. has promoted measures that imposes burdens on businesses and governments and can destroy jobs. ..

enforce as much as 90% of some markets away from the european union. even to be considering that at a time when we are struggling to get our economy growing, it is quite simply madness. we shouldn't go on like this. that is why britain has been arguing for a pro-business agenda in europe and this is not just a british agenda. over the last year we have spearheaded work with 15 other member states across the e.u., but inside and outside the euro zone. this weekend, angela merkel and i called for a package of

deregulation migration policies and i diaz out at the heart of what the european commission is promoting to. together we are pushing for completion of the single market in services and in digital. those two things could avalon 800 billion euros to gdp and could lead to drive to exempt micro businesses from excessive regulation both new and stand. i believe we need to be boulders though. so here's the checklist. all proposed e.u. measures should be tested for their impact on growth. we need a target to reduce the overall burden of deregulation and we need a new proportionality test to prevent because barriers to trade and service is anti-slash the number of regulated professions and europe. together with our international partners, we also need to take decisive action to get trade moving. i'm not going to give you the standard speech on delhi. last year at this very foreign,

world leaders called forth an all-out record to complete the doha round in 2011. reset is make or break year. it was only have to to be frank about it. it didn't work. but we must not give up on free trade. let us step forward with a new and ambitious set of ideas to take straightforward. first, rather than trying to involve everyone that wants, but if it's on bilateral deals done. let's get the e.u. trade agreements with india, canada, singapore finalized at the end of this year. completing all the deals now on the table could at 90 billion euros to your gdp. and let's also look at all the options on the table for agreement between the e.u. and the u.s., were a joke at a bigger impact than all the other agreements put together. next, let's be more creative in the way these multilateral system. far from turning our back of

multilateralism, we need the continued work of the wto to prevent any collapse back to protectionism and ensure we take a candid interest of the poorest countries in the world and ensure that the dead eto framework is set for the 21st century. and i also believe it means going forward, perhaps a coalition of the willing for countries who want to can forge ahead with more ambitious trade deals of their own, consistent within the wto framework. there are proposals out there already at the transpacific partnership. why not also in a vicious deal between africa or even a pan african free trade area. this is a bold agenda on trade, which can deliver changeable results of the world economy this year. i am proposing we start work on it immediately. now of course, the most urgent question facing all of europe right now is how to do with the euro zone crisis. and this is where i believe europe needs to be of all.

vital progress has been made. the european central bank has provided extensive additional support to europe's banks. many of europe some countries are taking painful and difficult steps to address the deficit and give up the degree of sovereignty over the government of their economies in the future. of course there was the agreement to set up a firewall. all of these i'll welcome the necessary steps and i don't underestimate for one moment the leadership in the church that his status as far. but we need to be honest about the overall situation. the crisis is still weighing down on business confidence and weighed down on investment. a year ago, racer 5% in spain, nearly 5% in italy and more than 7% in portugal. today they are so 5% in spain, after 6% in italy and 14% in portugal. so we still made those urgent

short-term measures to be properly put into effect. the october agreement needs to be fully lamented. the uncertainty in greece has to be brought to an end. europe's banks must be properly recapitalize and the imf has said the european firewall needs to be big enough to deal with the full-scale on the crisis in the potential contagion. and chancellor merkel is absolutely right to insist that you're some countries must do everything possible to get to grips with their own debt. we also need to be honest about the long-term consequences of the single currency. i am not one of those people who think that single currency can never work. look at america. look at the united kingdom. but there are a number of features that are common to all successful currency unions. a central bank that can comprehensively stand behind the current the and the financial system. the deepest possible economic integration with the flex

ability to deal with economic shocks and a system of fiscal transfers and collective debt issuance that can deal with the tensions on the about is between different countries and regions within the union. currently, it is not that the euro zone doesn't have all of these. it is that it doesn't really have any of these. now clearly, if countries are close enough in their economic structure, and intentions are less likely to arise. when imbalances are sustainment some countries do better than others year after year, you can face real problems. that is that the current crisis is demonstrating. now of course private capital flows can hang these problems for you while. in the euro zone, that is what happened. once markets lose confidence in dry upcoming election and unsustainable position. yes, tough fiscal discipline is essential, but this is a problem a trade deficit, not just budget

deficits. in these countries with those deficits making painful decisions to raise part of dvd to drive down cost year after year to regain their competitiveness. but that doesn't happen overnight and it cannot painful economic and even political consequences. nor in fact is that sufficient. you still need the support of single current partners. and as christina carter said at a system of fiscal integration and risksharing perhaps is the creation of your area bomb to make that support work. as maria monti has suggested the flipside of austerity and the deficit country is not the action to cut the weight of the service countries behind the euro. i'm not pretending any of this is easy. these are radical, difficult tips for any country to take. knowing how necessary, but also how hurt they are is by britain didn't join the euro zone.

but they are what is needed at a single currency as currently comes to to to to to work. now of course, some people will say it's all very well britain making these points, but you are not in the euro. last night to even vetoed adding a new treaty to the european union. let me answer that very directly. i understand what the euro zone members want to country and a treaty inside the european union. if they do, they have to be safeguards for those countries in the european union that have no intention of joining the single currency. i didn't get the safeguards that the treaty isn't going to hide inside the european union. let me be clear. to those who think that not signing the treaty that somehow britain is walking away from europe, let me tell you, nothing could be further from the truth. britain is part of the european union. not by default, but by choice.

it's fundamentally reflects our national interests to be part of the single market, which is on our doorstep and we have no intention of walking away from it. so let me be clear. we want europe to be a success in all the measures we are proposing for next week's european council can help achieve that success. but we want europe to succeed, not just as an economic force, but also as a political force, has an association of countries with the political will, values and ways to make a difference in the world. when that political will is there, we can make a decisive difference. together with president sarkozy, britain led the new european sanctions on iran's oil exports to the world doesn't have to confront a nuclear armed iran or white or military conflict. in syria, we've taken the lead against the repressive violence and we will not let up into these aside. in my we secure that u.n. resolution and put together a

multinational coalition faster than almost any time in our history. british and french pilots led the way to get there in the early hours and the fate of benghazi was at stake and together we saw it through, hop in the libyan people overcome tyranny and secure their own future. so i am proud to work with my european partners and i'm proud of what we can achieve. i stood on this platform on a year ago and said that europe could recover and dynamism. i still believe we can, but only if we are bold, only if we fight for our prosperity, get to grips with our data, take old decisions on deregulation of opening up the senior market on innovation, trade and address the fundamental issues at the heart of the euro zone crisis. all of these decisions lie in our own hands. they are the test of europe's leaders in the months ahead. yes, the stakes are high. they are incredibly high. but there is nothing about the current crisis that we don't

understand. the problems we face are man-made and with the problems we face are man-made and with real political will, we can fix with real political will, we can fix them. thank you. hot mark thank you are a match. very happy to take questions. i think there's some roaming microphones. so fire away. you can say who you are and where you are from. question over here. >> robert pattinson from abc. prime minister, in your view, what is the single most important thing the euro zone could do to see a way to this crisis? >> the single most heinous to deal with the short-term issues. their short-term and long-term. short-term has to beat greece, banks and firewall. if you do all of those three things together quick lien

fundamentally, i think he would ease the sense of crisis there is accompanied by what the european central bank is already doing and perhaps they could do even more. i think for 2012, that is what will make a clear difference in sediments, outlook that the euro zone leaders want to take the steps that would ease the short-term problems. as i said in a speech, that doesn't address some of the longer-term tensions at the heart of the single currency, which are about competitiveness and trade deficits is not just about budget deficits. it's that part of the piece that needs further work and attention and i think that despite chancellor merkel was taconite yesterday increased in the card well. the next these may come in anchors you are telling me that they think your son is the worst of the crisis. to think that's wishful thinking? >> i think what is happening still at the moment in terms of the high bond yields and countries that are effect take to get a hold back their growth

and participation in the european economy, that's still as i said in my speech is a little bit better than i was at the end of last year, but it is still not fixed. so you've got to fix in my view though short-term issues before you can go on and deal with a longer-term problem. why wasn't this problem -- why didn't manifest itself earlier you could ask yourself. there have been many years of successful your zone operation. of course in those years, private-sector financial flows in many ways are covering up for some of the deeper you can edit business problems. and so as those closer dried up, unless they returned from your going to have to address some of the more fundamental problems at the heart of the euro zone. because as i said, every other single currency has allay some of the speeches and it seems to me logical that a successful single currency will have to adopt some of those if it's going to succeed in the long-term. gentleman here.

>> from the united kingdom. administer, there's a lot of discussion in the euro zone the sake of every defining and remodeling capitalism. he recently made a speech on the subject. are we on an inevitable path toward state capitalism? >> no, i don't think we are. those of us who believe in genuine market capitalism need to make the defense of our systemic and state capitalism. i think absolutely at the heart of it is the root of law. and maybe not in finance to advertise to international investors. but it's a good tip to ask how many times does the government of a court case are frustratingly in britain we seem to lose a lot of time. it's a very good test of our that in a a genuinely free country or you can enforce your rights and property rights and everything else. i think the genuine open and free market economy is coming european economies have got to

stand up and shout about the values of freedom and democracy in the move because those are actually some of the things that make us safe and great economies to invest in. i don't think we should give up in this battle at all. the charge for your family can be put quite simply. we've got the two faces of europe. the face of europe to people from the outside look at that they admire still, which is the great values, great democracy, great rice, fantastic culture. these are great strengths for europe, but the second phase at the moment is that economic stagnation, slow growth, rising unemployment, lack of competitiveness. we can change that. we should be pessimists about that. if we actually deregulate our economies, keeper tax rates down, pay for long-term health care and social needs, change the way our economies were, we can be a success story in the future. we have to demonstrate the political will to do it. then we can show both faces to

the world and take on anybody because he's got the culture, right, democracy, and european values, but also the strong economy and the strong prospects for the future. the second phase we have to do it this year. >> gentleman over here in the middle. >> gun or bow code institute. you are looking for at the no credit to the negotiating and how are we going to deal with competitiveness of europe? >> right. on issue of the treaty as i said in a speech, it is quite clear to me that the euro zone countries need to come together, two more things together, cooperate my together another to make the single currency were. my view is they can obviously do that inside the european union if they want to or they can do it outside the european union. what matters is a country outside the euro zone is the

proper safeguard if they want to do it in the e.u. treaty. they have to have the treaty on the outside. i think people can overdo what happened in december. the real change in europe came when some countries decided to form a euro zone and to give up their countries and joined the euro. i was inevitably going to need to reconnect to fit together, talk together, work together because at that one currency between them. i don't think for one minute that this process disadvantages britain. we've got the best of all worlds. we are in the european union, major contributors. we have a major say about the single market in the work of the european union, but we are not in the euro zone and that gives us flexibility to ever interest rates to run on monetary policies. we combined the fiscal staff we undoubtedly need confirmed only yesterday by the imf is that there's no physical space in britain for a further stimulus. we can commandment tight fiscal

stance with what i would call quite a radical monetary policy were interest rates are low, but also working on credit easing in trying to get credit directly into banks and businesses to get our economy moving. i don't think this disadvantages britain at all. i think it is the right way to engage in europe and where we have strong partners in strong agreement on things like the single market and competitiveness. we fight very hard. we have lots of allies. on some occasions we don't want to be in part of what europe is doing. the no border region is an example. many went to tear down borders, have complete free movement. that is their decision. britain thinks it's right to keep orders because there is an opportunity to deal with drugs and guns and some other issues. so that part of the european union is to advantage. who is next? we need a bit of gender balance here. there we are over here. >> hi, i am from each a.

my question is about the uk's leadership in foreign policy. what if anything has the u.k. doing to ensure is that transition to democracy in egypt? >> well, i think this is a huge challenge. i'm still an optimist about the earth's brain. i think that region of our world, having the chance to throw out quite corrupt autocratic regimes and had the chance of democracy in sa and how they are governed is still a huge net positive for that part of the world, but also frankly for us as well, which is why i'm so proud of what we did in libya. and also to help we've could manage it. the issue in egypt is trying to get the transition right. i think the military powers have to do more to show people that they want a functioning democracy. i think they need to take further steps in that direction. i think in europe we have a responsibility of our major

trading partners and major investors into egypt dating for too long the neighborhood program in europe wasn't very conditional. it wasn't very act is. it wasn't very robust and we are changing that to make sure the way europe engages with the jets, with tunisia, morocco, libya is far more positive environment without trying to promote democracy and plurality in the building blocks of democracy that would give people in egypt that chance of success. egypt is key because of the size and scale. if the egyptian people can demonstrate they are on a path towards a far-off success of democracy. go to enormous amounts for that region. wish him luck away at those smaller countries, potentially they show a guideline. we've got a room

>> mr. prime minister, what is your message for the israelites people? >> well, message to palestinians and israelis as please keep talking. we have attacks in jordan at the start of this year and the truth of this matter if it doesn't matter what happens at the united nations. it doesn't matter what resolutions we pass in the house of commons or even year at the world economic forum. this can only happen. the two state solution of a secure israel next to a new of palestine could only happen through negotiation of those two parties thinning around the table. as president obama has been on one or two occasions, we can't want it more than they wanted. it is clearly in both of their interests with those tucks to go in and succeed. i would say they did say to netanyahu earlier this week on a factor so confidence building

measures to show palestinians are serious about getting a deal. i said to president abbas earlier this year, don't add too many preconditions before you go into talks because he got to do the negotiation around the table rather than before you get there. both sides can give up a little, can show they want to deal, they want to agree. i think we all know roughly what most of those in-state solutions are. many times the making carrion davos that they feel there is a right and no tunnel. we need to get a ton already so we can get to the endpoint will want to achieve. i think professor schwab again for inviting me to address you today. >> more from the world economic forum in the davos, switzerland. israeli president, her eyes shimon. this is about 50 minutes.

>> good afternoon ladies and gentlemen. it gives me great pleasure to introduce to you two gentlemen, with whom you are very familiar in davos. president peres shimon, we should nominate hughes seniors jason at the meeting because your first participation they over 20 years ago. prime minister fayyad, over 10 years it is a pleasure to welcome you here. and of course, it is very significant since those two leaders are sitting together this afternoon. if i introduce president for us,

you know it is a longer serving member of israeli common assets. his absurd and the peace process have and 10 the respect of his nation and respect of the world. as a person of experience i had the pleasure to cibecue yesterday and i never -- and you'll be surprised -- i have never been much in my life about brain research as a discussion with you. prime minister fayyad, you are of course the prime minister of the palestinian. your courage and conviction had created a new legacy for the palestinian people.

and you are very much recognized for your undoing commitments to build strong palestinian institutions. as well as for your effort to secure. a peaceful future for both palestinians we have a special conversation today. and i would like to ask immediately with the question that people are just annoyed if i may say so for the world population to listen to a dispatch made and to see a lack of progress. so that me ask you, if there's still reason for hope that we will have a reconciliation in

this question for road use? president peres. >> thank you very much, professor schwab. and they say a senior citizen of abbas, that this conference is different from all the other conferences i did participate. usually a process in davos was in search of unknown questions here this time, the questions are unknown. it is a conference to the site of all time for palestine. you cannot cheer and elements if you don't know the nature of it. and not only in the middle east, but usually the middle east is more in the question. i am convinced there will be peace between the palestinians i

am not an inspiration i want to give several reasons why. palestinians did a good job. with president abbas and prime minister fayyad and two ways. in addition they started to build the israeli state. so this time wasn't wasted. we have to distinguish between the mistake in the negotiation. you can build even if you don't have negotiation. so negotiations are necessary. and the fact is that the situation on the ground for palestine has changed and people

can feel the impact of this when you come to him allah, the lights thin like in tel aviv. now the palestinians are construct teammate totaling modern city next to ramallah. i want to commend my friend for the full support on debt there is no division. we may have some arguments here and there, but a sickly. and the second thing is in addition to being a state, dave told a false for their own security. they are fit to invest in an palestinians that are trying to control under the guidance of the united states of america and they can provide for the first time in the palestinian history a security force of their own to

the palestinian leadership, to president abbas and prime minister fayyad. those are two developments i suggest not to ignore. i don't want to create an impression that in data negotiations you have to build. now we have to make even on the negotiation, it is serious enabled. in neither the palestinians nor the israelis have any serious alternative but to make this. the uprising or whatever you call it in the spring and the airplane is not about the conflict. it's not about israel. it has nothing to do with it. what is happening in syria, what happened in other countries, in

egypt is now part of the conflict. yet, in the extreme people are using the conflict as a justification for their own self powered. we don't want to serve anymore is the next he's. we think the best thing we can do to enable other people to go their way is to take out this conflict from the contest and to take it out i have an agreement between the two of us to not share his next piece. then they say about israel i have to say very clearly. for us to make these are the palestinians is not justice. it is then historic commitment. we are trying to make peace not to achieve a political or strategic concept, but to be true to her tradition, the jewish tradition does not tell

me this. again slaves. and we have to remain true to our history and to our tradition and we are committed to make peace. after a long time how to turn into reality, finally just one solution, no weather and that is a solution that tuesday. a palestinian state. the arabs still have a palestinian state. 11 israelis they put them side by side with this. in the negotiation, there remains some problems. people are extremely nervous in little bit by the quality of putting dates for strachan's the time of negotiation.

i mean, i think the date of the 26th of this month is supposed to take some other dates. i am afraid that under intense pressure we shall commit mistakes because in the meantime, the middle east has changed already. egypt is no longer the same egypt used to be. it's an entirely new country. i might get criticized, not analyzed. but the position of each of inside the conflict is not the same as it used to be. i believe that with a little bit of patience and the remaining problems in my judgment are more psychological than realistic. i don't say that if it psychologically easier to solve you nothing whatsoever. but you can solve it. we can solve it.

and for my experience, i know that when you come to the end of the world and you think this is the end, it may be the last day. there is enough ground on both sides and understanding on both sides to have the highest respect for abbas and four fayyad i think is the best thing that could affect them for the palestinian, the best thing that could've happened for peace, the best thing that could've happened for us. we respect them. we want to talk with them. each of us have the domestic problems. you know, peace is a very serious problem domestically, not outwardly. you have to convince your people to make concessions. now people say we are ready to pay the price, but why are we paying so much? we don't know how to negotiate.

what can you answer? my only answer is that pieces like a lot. unless you close a little bit coming on every tribute. you'll always be a little bit forgiving and a little bit elegant and constructive and even ambiguous because negotiation is a very hard experience, but now they've lost one hears such answer your question, i do believe that i hope it will have been postponing the damaging and i think we have to continue to walk on the construct of one building on the diplomatic one, negotiating. despite of other disappointments, we shall find that come out with a peace

between the two of us and let the arab world to its own real problems. [applause] the mac dr. fayyad comment you feel we are crows? t. think we can do a quick >> i would like to take advantage of the advantage made by president peres and answer in a direct way. but not before a thank you for again having me and davos and also president of the statement of goodwill. i can't get to the question that it will not be in the sense of providing an object to reason or reasoning to the conclusion that there is a.

therefore, there must be hope. and if you're palestinian as i've said on the occasion, something that has to be conscious decision-making. the question is, can we do what is necessary in order to provide an object to underpinning for this commitment to continue to be hope will until we indeed are able to bring this conflict resolution. and here's where i would like to . there are two black building a negotiating peace. both are necessary. both are equally necessary. when they're working well and the outcome you are pursuing

both have to work with. right now, i think i'd have to really work hard to be hopeful in the political process is concerned. the process since inception to mean has never been disliking and focus in my own assessment. that is an objective assessment. whether we have a process driven by the strong desire to get something to go and i have to refer you to what is happening to september 23rd and putting them in a position of having to respond to that desire when i did not believe the conditions are actually right for a

meaningful consumption of political process. i argue that this is timeless. why not try. i would be okay if inside why we are pursuing building the states have a lot of requirements. so far as we palestinians are concerned to do that which is necessary to ensure that we have what is necessary for the state to emerge. and also that requires a lot of attention. by the international community. it was required as a cooperation

and to make it possible for a spouse to enhance to begin to be effectively able to project out which we have been doing over the past four years with the statehood as recited in making. this is where you begin to have that benefit between the building flat and the political process. so what i would argue that type in an order for us to be beginning to find an object is reason to be convinced and say that this process has gone somewhere politically. i believe these other issues require a lot more attention than they have been getting. but it is a key instrument of the process, given the key outcome of this political process. the most important one is the

emergence of that independence to palestine. that being the case come the palestinian authority itself cannot but be viewed as the palestinian authority finds itself right now in a very difficult position of having to manage the resources. because of its own failures, or is it because something completely exogenous enacting a persistence in authority of commitments and palestinian authorities are enabled adequately to operate in the entire economic spheres that will present a particular part that palestinian is going to emerge.

the palestinian authority does not develop without getting permits. the situation also requires close attention or as it was before. and there is finally the issue of what do we do in order to be able to put our country back together because that too is a requirement for us to be able. that happens in order to validate our shared commitment continued to be hopeful, something which i believe we should work on. >> thank you, that are fayyad. [applause] >> president peres, which should be ready to make some comments about. >> i think right now would be

done directly between the two of us because the quartet has its own split because there are elections both in america and europe and i think we are mature to combat the negotiations. we need the help of the united states. we need the support of all other people. i don't underrate it. there is a danger that is being should be done under pressure, or should that saw the situation. if you ask me, what is the greatest problems to make this in the middle east, my aunt teresa duran. duran is two agencies that don't permit any case. one agency is hamas. we left gaza, made a few days up

orchids to israel. now, aaron is analyzing it, sending arms that endanger snuggling, training, passing that are more extreme than they are. i'm the second agencies in lebanon, hezbollah. they almost but not to lebanon as an independent integrated country. they are known travels because the situation in middle east here but would like very much is in the international community, we will take upon itself to bring an end to the management of the iranians in the situation in the middle east. they want to be the high kaman. they don't want peace. they want to have not a national hacker money.

i believe and also the problem is not the trains nuclear issue. he ran to date is the only country in the world, which took more corruption as a way of governing. they encouraged every terroristic acts. they don't have any expression, risk back for human rights. it's the only country, mind you, the only country that threatens to destroy another member of the middle east. and i think the steps they are taking are promising they are not enough and i believe that we have to put pressure on the human rights. values are as strong as economics. and i believe we have to make

the people in iran hopeful that they can which is nothing to the iranians, nothing to the rest of the world is the first i can think of that doesn't have a message to any positive process. i am glad that steps were taken and we shall be free. hamas would make sense as they do without their on-air support. if the palestinians were united, it would easier for them and for us to make teas. we should continue in despite of this. it will relieve lebanon for being under pressure. so i believe if there is support, it should be expressed in two ways. to support the peace process, including the construction of the palestinian state as

professor fayyad has mentioned and released the conflict between the two of us to let us know the problems. there is nothing concerning the arab future hanging upon the conflict in the palace and dance with us. but it has been used as an excuse. and the value of the conflict. we would like to get out of that. we would like to be an excuse to say that the conflict in the palestinians and israelis to major issue. it is not. it's a major issue between the two of us, but it shouldn't be beyond demonstrations to go ahead. the problem in the middle east as poverty, not politics. the real problem in the middle east is the social and economic situation. the unemployment.

there is a terrible blow -- a line of poverty. the young people are unemployed. there is corruption. nobody can save the middle east but the people themselves. there's not enough money. so i think we can help the palestinians in the new age. because the old governments of the world became weak because the most important instruments of government was taken away from them. usually governments are governing by controlling the economy. since economies are no one great nation since economies are no one great nation since economies are no one great nation since economies are no one great nation local, it affects other country and no country can run it. and the economy is unpredictable. you can save as much as you want, but the young of 27 years

old, introduces the facebook and changes the world. they didn't kill him with what is happening. so it is in your world tonight in the only way to overcome poverty and hunger and starvation is to a dog the modern means of growth, which is on one and global and the other end, scientific and cultural. i am convinced that if the arab world will have a better condition, israel will have a better chance to live in peace. it is our interest to see them successful. to think it has been a pleasure to struggling. what four? and i think it's a great occasion for the world because

they want there to be peace in the middle east and there will unit growth in africa. the whole global structure will suffer so it comes together. the greatest countries in the world is to bring an end to the conflict unless handled the issues for the betterment of the middle east at the erez and christians but economy that i have to make one remark again. they became the greatest force against racism they can

discriminate anybody because of the squalor or religion anything else. so in a way it is for the first time we have the strongest economy in the world. nobody can control it and i don't envy any monumentally. they cannot laugh. it's opening up and that permit a young generation to become modern and save their lives and their future. so globalization is not only negative and i think they don't have a future and they don't have a message, not for their people, not for other people. and i think in the new

government's that they do not handle domain issues, which are economic and social in a new age, which is global and open. there won't be peace. >> dr. fayyad, i would like to come to three-point president president president president israelis stalled the issues through direct negotiations? the second point is related to the extranet site or is that have to be taken into consideration. president perez mentioned he ran. at some point is the impact of the great transformation a referral to the generation, a referral to the face a

millennial, arab spring generation. how does it change the situation and possibly the cost in the middle east? >> thank you. the first question you, but in the context in which we have been talking about, then it's for the negotiation actually to be based on a set of principles that are agreed and mark is also with what is required under the international law. in order to bring this conflict to resolution on a sustainable base at. for the outcome to be not only viable, but to be sustainably viable. >> and that is why the sensei was that they identified by when necessary. he said the political process, meaning negotiations and

loathing most unnecessarily in order to bring about an on this conflict. it seems to me that we need somehow a mess. the fact that direct negotiations are a requirement in order for us to be able to wrap up, it is also a matter definition because if you look at the nature of the conflict, the nature of the issues that the partners agreed to negotiate in a language actually of the agreement itself, alice is it going to be done? we made significant of how in order for us to be able to do this. and what i argue is in the x and, that it is really time to take a look at the fact is a

weakness. why is it that process is not delivered to the fullest extent it should have? and after all, that's the palestine should have happen by 1999. here we are in the business. i think it is time for the president to swing back a direction. as it was towards the international convention continues to be guided on the side that which is sure to be truly partners. why? because here we are. we are struggling actually getting back together to negotiate or to bring this conflict to an end. i am not really here suggest dean do what is required is the force resolution, but i am suggesting that the process is

in bad need of serious direction. we believe that it is inevitable for this conflict to come to an end does not mean there is a sense of inevitability that it's going to happen. it is time to find offense of this process. the context is important that we pose the second part of the question. and i believe the woman, two questions you asked are absolutely important. and i agree is that the president had about the united states, given where it is not now in the political cycle. that is where the european union is in terms of understanding the occupation with europe's own problem. ..

given that this position we were informed by lead regional powers regardless where they are i think one of the consequences i hope. talking about the plans of inquiry would be that sense as

arabs and begin to find a much better understanding of what the rule of government should be and what the government is about what a deep understanding of what it is that actually caused the arab spurring to have been. it happened as a direct consequence of the decades of the region governed nothing a fact of an affair or adequate manner or so forth as citizens' rights are concerned. it's much better understanding of how important it is to have that kind of government responsible and responsive government. how do you take advantage of that? at some level it seems to be this movement should help us

because after school looks very much consistent of the nature of what you're looking for. we are looking for being able to live as free people. these are the high your learnings of the arab spring and that is why from the beginning this movement would be respected. here we are on the side of things but there's another side to this which is important and i close by that. as it seems to me the consequence of the art of spurring our cause while fundamentally consistent is the cause of the air of -- arab

spring has been marginalized by yet in a substantial way. the course has been marginalized to the extent it is today for decades since the course of the palestine came. there is the occupation of the region on how to deal with it and the natural consequences of it to find their way around. economically speaking from the government plan to review how do you constitute yourself in the adequacy of government. they are very important questions and quite a number of years before the region settles down with the state of equilibrium. there's that and there is of course the other dimension of the preoccupation in terms of

where the united states is and the european union is and so therefore the challenge facing us trying to translate the will but we are looking for into something that can be invested in is to begin to answer the question how do you deal with this marginalization this is from our point of view as a question might. >> we are coming to an end, and i would like to mention for the sec not followed the process since 94, since the aftermath oslo confluence we were sitting practically every year on the stage i remember the great hope which people have in the confluence. i recall when they were sitting

together it was such a great hope in 2001, and now we are sitting again and the audience can only assure my impression to such reasonable and enlightened people full of good will, so my last question to each of you is what is the single most important factor now finally to the hope and reality and i don't want to hear what you will do what we want to hear what you suggest to would force you to the press minister what you would wish the most important factor so we can go one step finally forward after birds if you would conclude. >> my dear friend, listening to you and i hear it time and again

time has passed and things didn't happen as we had hoped for. let me make a philosophical remark. 20 years as a long time and historic will not a long period. usually the process takes time. but in those 20 years we talk about the remaining disagreement for getting the agreement and mentioned the most important one. we have to walk on the two legs on the diplomatic. one without a mother will not make us look as fast as we should talk to leche and walk to little. but what happened in those 20 years let's not forget the government today that has agreed to a two-stage solution.

it's a major ideological change in israel, don't forget it. the prime minister doesn't account for the left side. it comes from the right side. then again the government agreed to what you call economic abuse. it doesn't matter, but the construction is done in a great manor. it takes time to build the country and build the land isn't a simple proposition the land is 64-years-old. in the 64 years we have to go through seven with the people to help us understand we never gave

up and finally, and there is also a problem the two-stage solution and it wasn't ten years ago the basic agreement very profound that you would build a state and do it in full agreement we may have some arguments here and then we also understand that we have to negotiate directly between the two of us. i believe what we have to do now we cannot solve the remaining problems. they are heavy and complicated. you know, jerusalem. jerusalem has to matters.

in the 20 about these matters there are 100 sites in these matters. it's really complicated. it's beneficial, but it's also complicated. now, what we have to do is move in the two states. step number one is to offer in negotiations. we have the agreements that won't cover all the issues to enable the palestinians and israel to the open-ended negotiations. this would be done soon. why we should reopen the negotiations otherwise the press will take that and will the ongoing press conference. i believe it should be opened and we should negotiate peace to become maybe sooner than we think. but the years were not wasted.

it's not like it used to be. it's costly to you come to us, to all of us but we are addressing and i wish it could have been done quicker than it was and what i believe my hope is is the young heir of people would bring the people and nations to the economy to escape poverty only they can do it. i've been there since saturday. i don't consider them neither strangers or enemies. it may take a year or two years. i don't know. we should have a transitional per code that should be extremely difficult to overcome but which of the strain and wisdom and hope and not to become victims because some

things are disappointing and you can achieve just by jumping. i know it is jumping to conclusions. don't jump to conclusions. it takes time. but you are neater than most of us are thinking. it's more complicated that most of us would like to have, but there is a final attempt to complete a very long war and complicated that carries with it and it took hundreds of years. a broken continent with the civil war, with mistrust, so i'm

hopeful. i don't think we have to wait 20 years. i think it will come sooner than we think. we have now to negotiate the present crisis with elegance, wisdom, restraint, and put the judgment on top of everything. i learned from him several things to read don't be afraid to their. be careful not to block. and the second thing but the highest level of wisdom, the top of wisdom is the preference. there is nothing wiser to respect values it's very powerful and the best way to go

with more foundations not just on economic cooperation and not just on the diplomatic understanding. for that sense of proportion and let's look with open - two what is achieved because we don't achieve everything as soon as we would like to. thank you very much. [applause] >> short reaction, prime minister? >> two levels. we're looking at the microlevel first and the assurance to what it is exactly the prime minister would say and means when he says to state solution. what kind of state does he have in mind when he says palestinian state? >> if it is right it was about

two and a half years ago that the prime minister was for the first time showing its willingness and a way to accept the two-stage solution. i believe before we got to that point but we shouldn't look backward. looking for work at what we need that the macrolevel is an assurance as to what is meant by that. but let me be clear in terms of what we palestinians are looking for. we are looking for an independent voluble palestine and that is the definition of that. if we begin to know what and what was in that two-stage solution years after i think it is with much greater specificity than the prescription. the more microlith will the list is long but all life is there

and relates to the objective of building statehood. it shouldn't be a surprising list in terms of its composition allow the palestinian people the group to work to develop and indeed in that area where it will be merged. i made the difference in my earlier remarks where our capacity is constrained. the volume in the area is about 26% of the overall value of the west bank, yet inhabited by only 50,000 palestinians. that is an area that is hospitable. what is it that can be done to make it so? the incursions into the area of west bank in accordance with the agreement. measures like this are going to be suggested on the state in the

making which would be transformative both palestinians and israelis to get to that majority on both sides to developing to state solution but in the same majority that still does not think it can matter. what is it that must begin to happen in order to begin that process of transformation and i think attention to this would be the beginning. >> thank you. [applause] >> thank you. thank you, president and prime minister. we all have hope since the hope which was expressed here is soon followed by what he would call just and peace which would last and finally bring to people together. so when we are here again and

the prime minister in the next year's once hoped to receive some progress. thank you. [applause]

now the president of the national conference of american indians delivers the annual state of the indian nations address. d'huez congressman tom cole oklahoma is also an enrolled members of the chickasaw nation provided the congressional response. we will also hear remarks from the senate indian affairs committee chairman and vice chairman senators akaka and barrasso.

>> good morning. my name is jacqueline to refine the exit director of the national congress of american indians and i would like to welcome you here to our state of indian nations event. ncai is the largest, oldest organization in washington, d.c. representing the tribal governments across the country. i'd like to welcome our distinguished guests to washington dc. we have many listening to us across the country to watch the state of 2012 state of indian nations address and across the country we have students tribal citizens and leaders and have gathered in the schools and the centers to watch the events together. among many of the events across the country we are pleased that the history class in santa fe mexico is joining us. we have the university of

oklahoma of law and the center for american youth and washington, d.c. and the travel office and the indian tribe of wisconsin. leaders of tomorrow and today and there are other events across the country and we are glad am happy they are joining us. we have an incredible turn out today and we would like to acknowledge some of the guests in the audience and among those guests we have our board members of nci point we have the president, chairman ron allen, chairman matthew, president ed thomas, chairman - norris, president done arnold, cynthia and david. we are also joined by the tribal leaders across the country and some of those are the german gary hayes and councilman nd salles less. among the federal partners of course we have the esteemed and honorable daniel akaka and representative tom cole.

the assistant secretary, kimberly and charlie will break from the white house and from the senate committee and on dhs. ann plan from treasury. we also have our native organization partners ernie stevens, chairman, request from the housing council and many of our trial and radio stations across the country for airing today's address and bringing the state of indian nations to hundreds of dolphins of people in the indian country and beyond. this year we have asked an american indian active-duty military service member to begin our invest and introduce president keel. it's my distinct honor to be able to introduce and welcome the lieutenant colonel t. jay hunting horse who is a u.s. navy judge advocate at the pentagon.

lt. colonel hunting horse has participated in deployments and iraq and afghanistan. please join me in thanking him for his continued service and welcoming him here today. lieutenant colonel hunting horse. [applause] thank you. good morning. and it is my pleasure to introduce the president of the national congress of american indians president keel. president ki was currently the lieutenant governor of the chickasaw nation of oklahoma and was recently unanimously be elected to the second term as the president of the ncai. i'm here to represent the native and alaskan server servers and veterans and it is an honor to serve and protect all citizens of the united states including members of america's first nation. today there are tens of thousands of active-duty service members and over 300,000 native

veterans who know the great sacrifice to protect our freedom and sovereignty. one of the great veterans is jefferson keel, president keogh is himself a retired u.s. army officer with over 20 years of active-duty service. he has translated that sense of duty is to serving the country and building a stronger america. ladies and gentlemen from the president of the national conference to the conference of american indians, president keel. [applause] >> thank you. thank you. thank you for that warm introduction. i want to thank the native service members and veterans who have joined us today. many know the story of indian country. the challenges we have faced and the ones we face today. very few americans know the story of the hundreds of thousands of tribal members who have served in the united states military as far back as a

revolutionary war. as a veteran myself, i want to thank colonel hunting horse and the 24,000 active-duty american indian service members serving today to protect the sovereignty of the united states and the tribal nations of north america. thank you. [applause] my fellow tribal leaders, tribal citizens and american citizens, members of the national congress of american indians, members of the administration, members of the 112 congress and those listening and watching today, i'm honored to speak to you all, but especially to address the representatives of the more than 5 million native people and the 566 tribal nations of indian country. [applause] the state of indian nations is strong.

our nations are strong. our people are strong. like our sovereignty the strength of our nation's is inherited. the stated in the nation's as i outlined today should be defined by what we commit to right now to make the state of indian nations even stronger in the years to come. we all know the trials are facing a difficult history. we are rising from the harsh economic conditions to contribute to a more prosperous tomorrow. the tribes have been doing more with less with generations. i'm here to all 20 path to overcome our share challenges so we ask specific economic changes and improvements for our tribal nations. some of these require legislative action but many of these can come from direct action by the administration. ultimately though, it will be the actions of the native people that can change the nation's in

our community. native people what the first americans. chiral nations are the first governments of the country. one of the three sovereigns' recognized in the united states constitution. and our america is a place where each member of the american family of government contributes to a prosperous future. to achieve that vision, we need leaders who understand that in the in country matters. especially the presidential election year. we are aware of the impact an election can have on the indian country. in the recent years many have come to learn that the door swings both ways. indian country can have a significant impact on elections, and it can be game changing. as the navajo reservation and the young people on the alaska native villages go to the ballot box this november, they are standing on the shoulders of those who fought hard for that

right. as students in arizona state university and veteran some foreign land cast their vote the are reminding america the we matter. in the 1940's they return home to a shocking reality. american have accepted them on the battlefield but had no place for them at about box. the need of the indian community who raised the flag in hiroshima returning home to the homeland that he had defended and was denied the right to vote. from the pueblo who enlisted in a marine in the days following pearl harbor returned home to mexico and was denied the right to vote. these american heroes in spite eared to fight all the way to the federal courts for the right to participate in the 1948

elections. they express the power of the native vote for the first time. the first time the cast their ballot and it's been at work ever since. stories like this have shown native people when it comes to the native vote, we can and must think big. simply put, we will work tirelessly in 2012 to seek the highest native vote turnout ever. [applause] we know that it can be done. for instance on the reservation in montana the reits are regularly over 80%. the survey of the seniors at ucla shows that native young people participate at rates higher than any other group of students. this is especially important because almost half a million native use will be eligible to vote for the first time in the next four years. native people didn't see the world and don't see the world and for your election cycles.

we are focused on building stronger communities for generations to come. when we step in the ballot box, we want to vote for candidates who stand with tribal nations to create strong and prosperous futures. we are not mobilizing for one party or for one candidate. indians don't just vote d for democrat or or four republican. for us it is all - indian -- i for indian. [applause] we are independent voters and we will continue to vote for the candidate who is strong with our issues and cares about pleiades. that's why today i am calling on all presidential candidates to make sure indian country is of the table during the campaign and throughout europe administration. these specific actions should form the foundation of your native policy platform. first we call on the president to spend a special message to

congress on the importance of the nation to nation relationship. in 1970 president nixon set a historic message to congress on the tribal self-determination. that message lost the self-determination era the very framework that allowed tribes to prove our capacity as governor. all presidents should do the same. second, we call on the president to fully implement a united nations declaration on the rights of indigenous people. we specifically called for the review of all existing federal law to ensure the year in alignment with the declaration. there we call for an annual nation to nation summit an ongoing high level meeting this would institutionalize the current nation summit, tribal nation summit a meaningful commitment to the nation to nation relationship that must be upheld by all future presidents. we also call on the president to

convene a regular meetings on specific issues between tribal leaders and cabinet secretaries. elevate the native people of the federal government. it's past time for the qualified native people to be seated on the federal bench. the appointment of the senior adviser on the native american affairs has advanced policy-making at the white house and we applaud president obama for his leadership. with the and were tons of the indian budget in the coming decade with the office for the native american programs at the office of management and budget. finally, we call upon all candidates to actively engage in the country. in each candidate to visit the indian country to outline your policy positions and we also urge the campaign to make sure the tribal nations are part of the discussion at the presidential debate.

[applause] between now and the election we have a lot of work to do. for all of the partisan challenges of the past year the congress has found common ground on indian policy. under the bipartisan leadership of senators akaka and barrasso the senate committee on indian affairs has reached across party lines to develop legislation that promises to transform the country. and in the house republicans led german don young, democrats like dale kildee have worked hard to educate their constituents and colleagues about the benefits tribal governments offer our nation. there are some important things congress can do right now that can grow in the economies and create jobs. without spending a dime the congress can fix the problems created by the supreme court decision and offered certainty for the land transactions were critical to the country's

economic future. [applause] the part of the interior is already active to streamline approvals for the renewable energy, development and we urge congress to pass the act to expand leasing reform and pass an indian energy self-determination wall. congress can also act on public safety legislation that would attract businesses to our communities. we heard the passage of amendment to the stafford act that are supported by fema and would remove burdens from the state tribes in the critically emergencies one line of this or on the line. native women are the protectors of the culture and the future. we call on the senate to pass the violence against women act reauthorization and the save native women act but would take

critical steps to address the rates of violence being perpetrated against our women. [applause] the native class act offers the chance to provide the kind of education our young people need to succeed today and build the economies in the in country needs for tomorrow. our young people must not be left behind in the more. [applause] congress must stand with us now to get these bills passed. the long term success depends on america keeping her promises. that's why ncai along with the indian country are making available to you today our plan for the indian but. this document outlines our vision for investing in the future of our america and stabilizing the indian budget and it will create reliable

domestic energy and build a 21st education system in america. will modernize our infrastructure and on the implementation of critical legislation like a tribal law and order act and indian health care improvement act. just as our plan holds hope for the future, the budget control act poses a great risk to read the act requires congress to cut discretionary spending for the next ten years. much of the funding that fulfills the federal trust responsibility is categorized wrongly in our view as domestic discretionary spending. the trust responsibility is not a discretionary choice. it is not a line-item. it is a solemn agreement that has been sustained over hundreds of years. unless congress acts to hold the

tribal problems and starting in 2013 we are facing ten to 15% cuts across the board for the next decade. cuts that will threaten the central the rental services and affect millions of native citizens throughout vast regions of rural america. we are well aware of the budget challenges our nation faces. we live in india country. we know all about doing more with less. we urge congress to stand up for the relatively small piece of the federal budget that belongs to the tribal nations and our citizens. [applause] protecting the indian budget is the first step. the long term success depends on the tribal nations having the same opportunities to protect and preserve our communities that are available to the state and local government.

we exercise jurisdiction over land that would make us the fourth largest state in the country. we've done dozens of programs previously administered by the federal agencies and states and protected the reservations in the manner the states regulate off the reservation land. the tribal governments have proven their capacity to grow our economies and educate our people and manage resources. we need the decision making power back in the hands of the people who live in indian country. the people who know best -- [applause] the people who know best because these are our homeland, these are our people. the old way of doing business causes missed opportunities the nation in washington state solve this firsthand the tried work on a deal with wal-mart for the big new store on the reservation.

was a great opportunity come a great deal. a million dollars a year in the revenue for the tribe and new jobs for the tribal members and people throughout the community as with every lease on indian land the federal government needed to approve it to the process took more than a year. by the time it was approved the economic conditions have changed, wal-mart had made other plans a million dollars bond to read all those jobs gone. and this is not an isolated story. any tribal leaders can tell you stories today about business opportunities lost because of red tape. this is why federal partners are already proposed crucial reforms to free our economy. tribal nations again have proven our capacity. we don't need the government involved in all of our business decisions. we need flexibility.

and by creating yet, we will remove barriers that cost us jobs and opportunities. this is a goal i think we can all agree on across the political spectrum. and it's something we can achieve with a change in policy not an increase in spending. is the kind of solution that washington is crying out for and we in indian country are eager to answer the call. entering the government flexibility will yield more efficient programs and spending because decisions will be made by those best in the position to respond to the community needs. we will also relieves administrative burdens of the federal level. this message to mr. quaid from the tribal leaders. we went to them with one simple question what we have today already without asking for more resources that will provide a greater opportunity for the indians, create more impact for federal programs and over and

over the answer came back. we need freedom of the local level to best use our limited resources. we know what's best because we live in indian country. we know where the needs are when we know what works for our people. no one understands indian life better than the nations themselves. those people who live their daily. give us the flexibility. the standing tribe left dakota. delivered in broadband services across the reservation because the government flexibility. the decision to designate telecom as an eligible telecommunications carrier means there the first truly owned and operated broadband company that can receive universal service funds. this designation has empowered standing rock to own and operate a central telecommunications infrastructure. this offers avenues for economic

development opportunities to preserve the tribal languages and culture and infrastructure for the distance learning programs. that is the kind of flexibility that we need in indian country when only one in ten native people have access to broadband today. the colony in nevada opened a 65,000 square foot health facility in 2007 that showed the promise of the tax-exempt bond financing. almost $16 million in bonds funded a full-service clinic that serves 100,000 people each year. this project created permanent jobs and build the infrastructure for the quality health services. the tribes were denied full access to this source of financing until the recovery act created a limited bond offering. based on that experience, the treasury released an important recommended in the government

appear ready for the nation's because it works. this will bring huge economic benefits to the tribes and surrounding regional economies. education is another example where flexibility can prepare our children for the global marketplace. the nation's language immersion schools formed an innovative partnerships with apple computers to integrate technology and the cherokee language. they develop the language software for use on macintosh computers come iphone come ipod and ipad. students even chat online and cherokee with students from eastern cherokee in north carolina. this is a powerful symbol of the tribal innovation and at the top of innovation that's investing tribes with greater authority over our own programs unleashed. whether an economic development -- [applause]

whether an economic development for education, health care, energy, the key to getting it right is the freedom to identify and tear down barriers to our success. tribal leaders carry with us a dream. it's a dream passed down from our parents and grandparents. it doesn't look forward to 2012 or 2016. it looks to the seventh generation. we see a future where the trust relationship actually works. it works with tribal nations in the works for our federal partners. our ancestors knew tribes could govern our nations and ourselves like no one else. today we've proven that. residents of rural oklahoma are driving through our health facilities because they offer the best services around.

states and counties are turning to our traditional best managed natural resources. citizens of the states are coming to the tribes for job opportunities and a good education at the tribal colleges. the companies are coming to us to set up businesses on the reservation and bring american jobs home. when we have the tools and freedom that we need, we are creating businesses, delivering services and leading the way. it's time to build our trust on that reality. [applause] that trust also requires consultation. legally enforceable consultation. without power of legislation and accountability, pryor and informed consent are just nice words on paper. as president obama himself said

when he announced his support for the declaration, what matters far more than words or actions to match those words. we call for action to make consultation count. enforceable consultation we means we must talk about another idea. tribal consent. there would be a public outcry if the federal government tried to impose policy on a state without its consent. the concerns of the tribal nations are routinely overlooked even when more than a dozen tribes or larger than some northeastern states. this must not stand. [applause] hauer america is a place where all candidates know that the matter. and america sees the about box. it is a place where each and

every president honors our unique nation to nation relationship with the countries are always of the table not just because it is a good idea, but it is the right thing to do but it's the smart thing to do. our america is the home to a congress that works across the party lines to free our economy. our america is a place where governments keep their promises. our america is where the nation's create economic opportunities and people come to us for the best jobs. it's a place where the tribes on the forefront of new technology, high-tech manufacturing and the clean energy. how were america is where indigenous people reach across borders and bring home economic opportunity for all americans. as the oldest government in this country, tribal nations understand what is required to overcome the start economic conditions.

perhaps more than any other time in history our nations must stand together, in power to make profound and permanent improvements in the lives of our people. our nation's are committed to the success of the united states of america. let us realize that future together so that our nations strive today and forever. thank you. [applause] thank you. [applause] >> thank you, president keel and now have the privilege of introducing the champion of one of our champions from congress and what are your friends

congressmen tom cole has agreed to give us the congressional response. he's a fifth generation oklahoma and emerald member of the chickasaw nation. he's been serving on the indian issues in congress since 2002 and we hope he continues in that position for a long time to come. please help me welcome congressman tom cole. [applause] it's an honor and privilege and pleasure to follow my good friend, my fellow chickasaw governor jefferson keogh. governor keel was here to give you and did give you a thoughtful and eloquent address. i'm here to prove to you that not all are thoughtful and eloquent. [laughter] but it is my privilege to look

across indian country and i do so like everybody here in this room as an american and very pro-american and i do so as someone who is very proud of my state. i know most of your part of the states in which we reside in our american citizens but i also do that as a felony if american and as somebody that is proud of my tribal traditions and my tribe. my forebears and my family are members of the chickasaw nation and leaders in the chickasaw nation before there was a united states of america. my great, great grandfather was the clerk of the chickasaw supreme court before there was a territory of oklahoma, and my great-grandfather was treasurer of the chickasaw nation before oklahoma was a state. and so, we approach this as most people in this room approach this with a very long and a different and nuanced view of

american history. that isn't true for most americans. they don't have the devotee to draw from that tradition and most of the problems we face when we deal with other americans is largely because to the are ignorant of those traditions and have not had the opportunity quite frankly to be educated about them and the labor under many, many misconceptions of who we are and what our status as in the larger political system. in washington today i would say from a native american perspective and from an american and oklahoma perspective, it's the best of times and the worst of times to borrow a phrase from charles dickinson. it's the best of times in many areas. we have certainly in the house and i think in the senate bipartisan cooperation on native american issues to an unprecedented degree. that is unusual, and frankly native american issues are not partisan issues and i don't think should ever be approached in a partisan fashion.

the reality is most of our interests span political parties and some of them are absolutely irrelevant to the political dialogue in the debate between republicans and democrats in what goes on in this country. but what is enduring is our federal trust relationship as individual indian nations with the federal government. and whether or not the federal government carries out its responsibilities in that particular area. in the appropriations area where has said all i specialize and spend a great deal of time this has been a pretty good year for us. i want to commend the administration on the very conservative republican. obviously i have differences with the administration, but each year the president has been in office he's put forward a budget and a good budget and a serious budget for us to consider in the legislative process. and certainly on the house side i can tell you we have a real bipartisan alliance where most

indian funding takes place. our subcommittee chairman from idaho, our ranking member jim moran from virginia have a wonderful partnership been working relationship and because of that and working honestly with the administration we have made substantial progress. we increased substantially 10% in the house appropriations for the indian health service. the president is facing a difficult budget and reduce the budget very slightly. we thought actually it was too much and so we've restored some of that funding. and if you look at indian funding of things like impact and across the board while it didn't see the same increases that we saw in other areas it was recently held harmless and that is a good thing when we are experiencing difficulties in other areas. so that bipartisan relationship has been very powerful and very good. i think you've also seen it

expressed in the establishment in the national resources committee for the first time in many years in the house subcommittee on indian and native alaskan affairs. that's something that my good friend dale kildee and i have worked on for many years and it finally came to fruition. that wouldn't have happened if the republican chairman of the committee hadn't been supportive of that. and he put in as the chairman don young from alaska and we have no greater ally on the native american issues than don young and his partner in that my friend from oklahoma is equally committed equally knowledgeable. so that has been a really good thing and has provided a vehicle where we will begin to get much more in the way of attention, focus and momentum for issues that are important in indian country. with me mention just a few of those. h.r. 2362. i will always start out with my own legislation which is a trade

bill could a trade bill because we have a unique opportunity with the country of turkey which has a longstanding interest in the native american affairs with a belief that people are related to native americans and want to move ahead and that bill has been heard in the subcommittee and is now awaiting action. we have h.r. 205 and my good friend from new mexico, a democratic bill very, very important and extending the tribal authority and the surface leasing areas, things the would give individual tribal governments precisely the kind of flexibility and authority that the lieutenant comer was talking about in his address and that is a bipartisan bill come a good bill. , too oblix the action. we also have a chart 1599, which is an economic development bill which i have got more importantly because he is the

chairman. donald young is working on a major economic above and initiative. again, things the would give tribal governments the tools they need to continue their own affairs and their own destiny. we have had hearings on the fix of on the bills that representative kildee has offered and i've offered and i always like to say i will take either one of those bills. i would be delighted representative kildee's bill pastore mine. he's a wonderful partner, a great friend and believe congress. as we leave a lot of things happening in the house of representatives. in the senate, and i don't pretend to think of for the authoritatively to that. we have chairman akaka and senator barrasso his ranking member but we don't have better advocates, and they worked hard to focus attention in the senate. they worked hard on economic development issues and begin to educate their colleagues on a bipartisan basis and areas of which we can move together.

so we have a strong bicameral as well as bipartisan partnership native american affairs. i would be remiss not to mention the administration as well. first the personnel many of whom are here and the director here but also secretary cells are. they've shown continuous and sustained interest and commitment that the movement of important legislation and administrative decisions and in the in countries to the iraq jolie talking about this. the administration has put in place advisers at senior levels and cabinet positions so that members coming into those important positions have immediately available to them advice and counsel with people that understand in the in country and all of its nuances. the presidential initiative on the native american nation summit i think is really one of

the hallmark contributions to institutionalize and strengthen the relationship between tribal government to read i could go on the individual initiatives of the administration has taken on the surface leasing and on renewable energy. i would like to use the flexibility and this is a very important step in the right direction on the part of the administration there's lots of good things happening there and the good things that have been almost invariably bipartisan. where we found common ground to work together for the good of indian country. on the other hand, when i say it's the worst times, there are some challenges. i think particularly we need to have more bipartisanship in the appropriations process between the two bodies. reality is the house this time as did the senate in terms of its commitment to funding of

indian programs. and when we got into the process of negotiation, we basically were fighting a bipartisan alliance on the house and wanted to keep money and native american concerns particularly in the health the area and on the senate side it wasn't so much opposition was simply other priorities. they are not against what we are trying to do. the additional priorities. i would argue that actually there should be few if any previous higher than the trust relationship the united states has with individual indian nations. [applause] so, we need to expand that bipartisan and bicameral cooperation. we need to build on the good work of senator akaka, senator barrasso into a partnership where we move together were frankly democrats and republicans can go into the indian country with a great deal to be proud of instant the great deal to apologize for. but let's be real.

if we wait simply on the federal government to take care of our problems, we will be waiting for the very long time. indians of all people to know self-reliance, self progress, self-determination as lieutenant governor said are the real brauts to moving forward. the government job is to keep its commitment honor its trust responsibilities and work with us to remove the obstacles that have been placed in front of tribal development and development of individual klindienst. that's something where we have a long way to go. in the scope of our challenge is his direct and monumental, and most americans don't realize it. you know, i sit here and quote statistics we all know and make the point whether it is in terms of their education, the life span, their health, their opportunities for work on the first americans still after to

entered for your use in this country to exist in the last americans. that needs to change. it's a national disgrace, it's a national challenging the will take a national effort to move us in the right direction. i think the challenge for this particular organization is to educate the rest of america about the challenges that we face in the indian country. and i am proud of what this organization has done frankly to about the six systems. it is a long and honorable history of doing just that. but the scope of the challenge is just amazing. this summer i had the honor of traveling with my good friend, sick of 3:00 and the director and ruby was with us from the interior formally the white house and the congressman simpson, congressman from minnesota, and we all went first to chickasaw and oklahoma, where we have been fortunate. we have had trouble just like other people have had

challenges. this is not our historical homeland. my forebears didn't come there by choice. but the of joost tools and the opportunities that the have had. they have had their support ships because overcome them in many ways and we have the trouble economies, dynamic tribal governments are doing well. and then we went to see some of our friends on the great reservations in a memo with and south dakota who are also resilient, innovative, able. but their challenges are greater and the challenges that they face americans should see. they should go to pine ridge. they should go to the cheyenne river. they should go to stan. they should see some of the challenges that their fellow americans are facing. and i'm sure if they saw them and understand them they would work with us to overcome them. so that is going to be aware great challenge going forward. we have a very, very different perspective on american history

and i want to end with a couple of stories to drive that home. my great aunt was a famous indian folklore artist and storyteller, really internationally renowned and she not only told stories of our people in chickasaw with a lot of tribes and she used to pick up historical anecdotes and incidence and tried to call more out of them than an indian would draw out of them and i remember one -- i want people to quote it verbatim -- it is one of my favorites and based on an incident in a shiny and war chief in treating negotiations in the 1860's dealing with the american government and trying to comprehend and encapsulate in words the enormity of the challenge and the change he was seeing in the course of his lifetime and the course of the treaty negotiations he addressed the representatives of the united states government, and he was an american but not an american